Unsplash/Elias Tsapaliaris
Masdar considering 2026 IPO
Expanding into Europe
Could spur other listings
An initial public offering by Abu Dhabi’s Masdar could mark a pivotal moment in the move towards cleaner sources of power in not only the world’s largest oil-producing region, but also in Europe, industry observers say.
Masdar, more officially known as the Abu Dhabi Future Energy Co, is considering an IPO next year to fund expansion and a listing on the Abu Dhabi exchange, according to reports this week.
Masdar has been on a buying and investment spree linked in part to the potential for the sunnier North Africa and Middle East region to be a source of renewable power to the colder more populous Europe.
Masdar’s acquisitions include a majority stake in Greece’s Terna Energy and investments in Spain.
The company is looking to develop more than 100 gigawatts of power-generating capacity by 2030.
“Masdar’s ambitious expansion plans add to its appeal,” says Vijay Valecha, chief investment officer at Dubai-based Century Financial.
The result could be robust interest in a Masdar IPO, Valecha says. Last year, Masdar sold $1 billion of bonds to finance growth, a sale that was almost five times oversubscribed.
Masdar has yet to disclose valuation targets for its potential IPO.
A valuation aligned with the FTSE ADX General Index, where the price-to-earnings (PE) ratio is a little more than 23:1, could place Masdar at around AED 2.6 billion ($700 million), according to Valecha.
By contrast, its regional peers such as Saudi Arabia’s Acwa Power, trade at a PE of more than 142:1 and Abu Dhabi National Energy Company (Taqa) at 50:1.
Bhaskar Dasgupta, chairman of the board at financial services provider Apex Middle East and India, highlighted Masdar’s global portfolio as a key draw for international investors.
“The investor appetite from the institutional side will be substantial,” Dasgupta told AGBI.
“Masdar, backed by Mubadala, should command interest from institutions, not just in the UAE but wider in the GCC and globally where good quality, non-conventional energy firms are rare to come to the market, especially with such pedigree.”
Mubadala is a sovereign wealth fund of the government of Abu Dhabi.
A Masdar IPO could also spur listings by other Middle Eastern renewable energy companies.
The UAE and Oman are targeting net-zero emissions by 2050, while Saudi Arabia, Bahrain and Kuwait have announced targets for 2060.
“A successful Masdar IPO could be a turning point for the Mena renewables sector,” says Tony Hallside, chief executive, STP Partners, a prime brokerage firm based in DIFC.
“It sends a clear signal that the region is ready to commercialise clean energy assets at scale. We could see more listings follow, especially from players in the UAE, Saudi Arabia, and Egypt as capital markets deepen and investor appetite matures.”
